As the European market experiences a cautious optimism with major indices like the STOXX Europe 600 Index rising amid expectations of U.S. interest rate cuts, investors are closely monitoring economic indicators that could impact small-cap companies. In this context, identifying stocks that show potential through factors such as insider buying and favorable economic conditions can provide insights into promising opportunities within the small-cap segment.
Top 10 Undervalued Small Caps With Insider Buying In Europe
| Name | PE | PS | Discount to Fair Value | Value Rating |
|---|---|---|---|---|
| Kitwave Group | 12.2x | 0.3x | 40.18% | ★★★★★☆ |
| Boozt | 16.1x | 0.7x | 42.35% | ★★★★★☆ |
| Cairn Homes | 12.5x | 1.6x | 24.19% | ★★★★★☆ |
| Bytes Technology Group | 18.0x | 4.5x | 8.78% | ★★★★☆☆ |
| Instabank | 11.0x | 2.9x | 20.82% | ★★★★☆☆ |
| Renold | 10.6x | 0.7x | 2.72% | ★★★★☆☆ |
| Nyab | 22.3x | 1.0x | 35.40% | ★★★☆☆☆ |
| FastPartner | 17.3x | 4.4x | -34.40% | ★★★☆☆☆ |
| CVS Group | 46.4x | 1.3x | 36.24% | ★★★☆☆☆ |
| Social Housing REIT | NA | 7.0x | 33.14% | ★★★☆☆☆ |
Let's dive into some prime choices out of from the screener.
CVS Group (AIM:CVSG)
Simply Wall St Value Rating: ★★★☆☆☆
Overview: CVS Group operates primarily in the veterinary services industry, encompassing crematoria, laboratories, veterinary practices, central administration, and an online retail business with a market capitalization of approximately £1.50 billion.
Operations: The primary revenue stream is from veterinary practices, generating £600.50 million, supplemented by laboratories and online retail business with £30.90 million and £48.50 million respectively. The gross profit margin has shown fluctuations over the years, reaching 44.23% in December 2023 before slightly decreasing to 42.90% by September 2024. Central administration incurs a cost of -£23.50 million, impacting overall profitability alongside other operating expenses which have increased over time to reach £241.2 million by December 2024.
PE: 46.4x
CVS Group, a small European company, shows signs of being undervalued despite some challenges. Insider confidence is evident with share purchases over the past year, suggesting belief in its potential. Although profit margins have decreased from 7.3% to 2.9%, earnings are projected to grow by 18% annually. The company relies entirely on external borrowing for funding, which carries higher risk but remains manageable given their strategic focus on growth and market position within the veterinary services sector.
- Unlock comprehensive insights into our analysis of CVS Group stock in this valuation report.
Evaluate CVS Group's historical performance by accessing our past performance report.
Marshalls (LSE:MSLH)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Marshalls is a UK-based company specializing in the manufacturing and supply of landscaping, building, and roofing products, with a market capitalization of £1.16 billion.
Operations: The company generates revenue primarily from its Roofing, Building, and Landscaping products, with the highest contribution coming from Landscaping. Over recent periods, the net profit margin has shown variability but was last reported at 4.23%. Operating expenses have been a significant portion of costs, with general and administrative expenses consistently being a major component.
PE: 18.5x
Marshalls, a smaller European company, has seen insider confidence with recent share purchases in the past quarter. Despite a decrease in net income to £8.9 million for H1 2025 from £16.1 million last year, sales increased to £319.5 million from £306.7 million, indicating potential growth prospects amid challenges. The interim dividend was reduced to 2.2 pence per share as earnings are expected to decline this year, reflecting cautious optimism about future performance amidst ongoing board changes and strategic shifts.
- Dive into the specifics of Marshalls here with our thorough valuation report.
Gain insights into Marshalls' past trends and performance with our Past report.
Lime Technologies (OM:LIME)
Simply Wall St Value Rating: ★★★★☆☆
Overview: Lime Technologies specializes in selling and implementing CRM software systems, with a market cap of SEK 3.20 billion.
Operations: Lime Technologies generates revenue from selling and implementing CRM software systems, with the most recent figures showing a gross profit margin of 48.37%. The company's cost structure includes significant operating expenses and non-operating expenses, which influence its net income margin, recorded at 13.96% in the latest period.
PE: 41.3x
Lime Technologies, a nimble player in the European market, has shown solid financial growth with Q2 2025 sales reaching SEK 183.19 million, up from SEK 174.71 million the previous year. Net income also rose to SEK 26.16 million from SEK 20.42 million. Insider confidence is evident as their CFO acquired shares worth around SEK 101,000 recently. The company actively seeks acquisitions in Lime CRM and Sportadmin sectors to bolster its portfolio further, despite relying on external borrowing for funding.
- Delve into the full analysis valuation report here for a deeper understanding of Lime Technologies.
Understand Lime Technologies' track record by examining our Past report.
Summing It All Up
- Unlock more gems! Our Undervalued European Small Caps With Insider Buying screener has unearthed 45 more companies for you to explore.Click here to unveil our expertly curated list of 48 Undervalued European Small Caps With Insider Buying.
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Curious About Other Options?
- Explore high-performing small cap companies that haven't yet garnered significant analyst attention.
- Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.
- Find companies with promising cash flow potential yet trading below their fair value.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Valuation is complex, but we're here to simplify it.
Discover if Marshalls might be undervalued or overvalued with our detailed analysis, featuring fair value estimates, potential risks, dividends, insider trades, and its financial condition.
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